Fact #1: Conveyancing is the process of transferring ownership of property from one person or entity to another. Fact #2: the jargon used throughout the conveyancing process is really muddy and confusing. Below, we are going to clear the air on a few crucial terms that you will hear when buying and selling a property.
Exchange: The exchange occurs when the binding legal contract to buy and sell land is produced. At the time of the exchange, a 5-10% deposit of the purchase price is paid. In most cases, the deposit is held by the vendor’s lawyer, conveyancer or estate agent until the contract is completed.
Completion or Settlement: This is what everyone has been waiting for. Completion of settlement occurs after the remaining purchase amount is paid. The title transfer is made and possession is handed over to the purchaser.
Property: A property is not just a structure or piece of land. In fact, it is a broad-reaching term that refers to goods (chattels), land (real estate), fixtures (goods attached to land), non-physical rights (confidential information, intellectual property), and chose in action (the right to sue).
Person: It turns out a person is more than just a person. It means any legal entity, including strata bodies corporate and statutory corporations (local councils), companies, and individuals humans).
Written contracts: The binding agreement must be in the form of a written agreement in order to buy, sell, or mortgage real estate. A firm handshake or gentleman’s agreement on the golf course won’t suffice, unfortunately.
Obviously, buying and selling real estate is a huge transaction and commitment. For most Australians, it will be the biggest of their life. It is not uncommon for disputes to arise, especially when buying the off-the-plan real estate. Therefore it is essential that you arrange for your lawyer to begin contracts of sale review and building contract review as early as possible. This mitigates any potential settlement delays if any issues are picked up in the contracts. If you would like more information on Titlexchange and our package benefits, click here or schedule a call with one of our lawyers.